SOUTHERN PINES, N.C.,
April 27, 2016 /PRNewswire/
-- First Bancorp (NASDAQ: FBNC), the parent company of First
Bank, announced today net income available to common shareholders
of $6.8 million, or $0.33 per diluted common share, for the three
months ended March 31, 2016.
The net income and earnings per share for the first quarter of 2016
matched those that were reported in the first quarter of 2015.
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2016 amounted to
$30.2 million, a 1.7% increase from
the $29.7 million recorded in the
first quarter of 2015. The increase was due to growth in the
Company's loans outstanding and higher yields realized on
investment securities.
The Company's net interest margin (tax-equivalent net interest
income divided by average earning assets) in the first quarter of
2016 was 4.07% compared to 4.19% for the first quarter of
2015. The lower margin was primarily due to lower loan
yields, which have been impacted by the continued low interest rate
environment. Additionally, the Company recorded a lower
amount of discount accretion related to loans purchased in
failed-bank acquisitions. As shown in the accompanying
tables, loan discount accretion amounted to $1.1 million in the first quarter of 2016,
compared to $1.6 million in the first
quarter of 2015. The lower amount of accretion is due to the
continued winding down of the unaccreted discount amount that
resulted from failed-bank acquisitions in 2009 and 2011.
Excluding the effects of discount accretion on purchased loans,
the Company's net interest margin was 3.93% for the first quarter
of 2016 compared to 3.98% for the first quarter of 2015, with the
decline being due to lower loan yields. See the Financial
Summary for a table that presents the impact of loan discount
accretion that affects net interest income. Also see the Financial
Summary for a reconciliation of the Company's net interest margin
to the net interest margin excluding loan discount accretion, and
other information regarding this ratio.
Provision for Loan Losses and Asset Quality
The Company recorded a total provision for loan losses of
$0.3 million in the first quarter of
2016 compared to a negative total provision for loan losses
(reduction of the allowance for loan losses) of $0.2 million in the first quarter of 2015.
As discussed below, the Company records provisions for loan losses
related to both non-covered and covered loan portfolios – see
explanation of the terms "non-covered" and "covered" in the section
below entitled "Note Regarding Components of Earnings."
The provision for loan losses on non-covered loans amounted to
$1.6 million in the first quarter of
2016 compared to $0.1 million in the
first quarter of 2015. In 2015, a prolonged period of stable
and improving loan quality trends resulted in a minimal amount of
provision for loan losses that was needed to adjust the Company's
allowance for loan losses to the appropriate amount.
The Company recorded a negative provision for loan losses on
covered loans (reduction of allowance for loan losses) of
$1.4 million in the first quarter of
2016 compared to a $0.3 million
negative provision for loan losses in the first quarter of
2015. The increase in the negative provision in 2016 resulted
from lower levels of covered nonperforming loans, declining levels
of total covered loans, and $1.0
million in net loan recoveries (recoveries, net of
charge-offs) compared to net recoveries of $0.2 million that were realized in the first
quarter of 2015.
Total non-covered nonperforming assets declined 20.8% over the
past year, amounting to $71.6 million
at March 31, 2016 (2.18% of total
non-covered assets) compared to $90.4
million at March 31, 2015
(2.92% of total non-covered assets). The decline in
non-covered nonperforming assets is primarily due to on-going
resolution of nonperforming assets and improving credit
quality.
Total covered nonperforming assets also declined over the past
year, amounting to $10.7 million at
March 31, 2016 compared to
$14.5 million at March 31, 2015. Over the past twelve
months, the Company has resolved a significant amount of covered
loans and has experienced strong property sales along the
North Carolina coast, which is
where most of the Company's covered assets are located.
Noninterest Income
Total noninterest income was $5.0
million and $4.5 million for
the three months ended March 31, 2016
and March 31, 2015, respectively.
Core noninterest income for the first quarter of 2016 was
$7.3 million, an increase of 2.2%
from the $7.2 million reported for
the first quarter of 2015. Core noninterest income includes
i) service charges on deposit accounts, ii) other service charges,
commissions, and fees, iii) fees from presold mortgages, iv)
commissions from financial product sales, and v) bank-owned life
insurance income. The largest increase in core noninterest
income was from commissions from financial product sales, which
includes property and casualty insurance commissions.
Property and casualty insurance commissions increased due to the
Company's January 1, 2016 acquisition
of Bankingport, Inc., an insurance agency located in Sanford, North Carolina. Fees from
presold mortgages declined to $0.4
million for the first quarter of 2016 from $0.8 million in the first quarter of 2015 as a
result of fewer mortgage loan originations.
Noncore components of noninterest income resulted in a net
decrease to income of $2.3 million in
the first quarter of 2016 compared to a net decrease to income of
$2.6 million in the first quarter of
2015. The largest variance in noncore noninterest income
related to gains (losses) on foreclosed properties.
Noninterest Expenses
Noninterest expenses amounted to $24.8
million in the first quarter of 2016 compared to
$23.7 million recorded in the first
quarter of 2015, an increase of 4.5%.
Reported salaries expense was unchanged at $11.5 million. A gross payroll increase of
$0.7 million in 2016 associated with
the Company's growth initiatives was offset by lower incentive
compensation expense and higher salary deferrals associated with
new loan originations.
Employee benefits expense was $2.7
million in the first quarter of 2016 compared to
$2.2 million in the first quarter of
2015. This increase was primarily the result of a
$0.4 million increase in employee
health insurance expense. The Company is self-insured for
health care expense and experienced unfavorable claim levels in
2016.
Other operating expenses amounted to $7.6
million in the first quarter of 2016 compared to
$7.0 million in the first quarter of
2015. The increase was primarily due to higher credit card
and debit card fraud losses, as well as legal expenses associated
with merger and acquisition activities.
Balance Sheet and Capital
Total assets at March 31, 2016
amounted to $3.4 billion, a 5.1%
increase from a year earlier. Total loans at March 31, 2016 amounted to $2.5 billion, a 6.0% increase from a year
earlier, and total deposits amounted to $2.8
billion at March 31, 2016, a
4.9% increase from a year earlier.
Non-covered loans amounted to $2.44
billion at March 31, 2016, an
increase of $164.3 million, or 7.2%
from March 31, 2015, as a result of
ongoing internal initiatives to drive loan growth. Loans
covered by FDIC loss share agreements declined 16.9% over the past
year and are expected to continue to decline as those loans
continue to pay down.
The increase in total deposits at March
31, 2016 compared to March 31,
2015 was primarily due to increases in checking, money
market and savings accounts, which increased in total by
$224.9 million, or 11.7%, over the
past year. Those increases were partially offset by decreases
in time deposits, which declined a total of $91.6 million, or 11.9%, over the past
year. Time deposits are generally one of the Company's most
expensive funding sources, and thus the shift from this category
benefitted the Company's overall cost of funds.
The Company remains well-capitalized by all regulatory
standards, with a Total Risk-Based Capital Ratio at March 31, 2016 of 14.29% compared to the 10.00%
minimum to be considered well-capitalized. The Company's
tangible common equity to tangible assets ratio was 8.24% at
March 31, 2016, an increase of 16
basis points from a year earlier.
Expiration of Loss-Share Agreement with the FDIC
The Company's loss-sharing agreement with the FDIC related to
non-single family loans and foreclosed properties that were assumed
in the failed bank acquisition of Bank of Asheville in 2011 expired on April 1, 2016. The Company will bear all
future losses on these assets, however, at present, management does
not expect such losses will be materially in excess of related loan
loss allowances. The following presents information related
to these assets as of or for the quarter ended March 31, 2016, which continue to be included
within the "covered" line items in the accompanying tables.
In the future, these assets will be included in the "non-covered"
categories.
As of March 31,
2016
|
|
Loans outstanding -
gross:
|
$18.9
million
|
Remaining loan
discount:
|
$1.2
million
|
Current carrying
amount:
|
$17.7
million
|
Nonaccrual loans –
carrying amount:
|
$2.8
million
|
Troubled debt
restructurings - accruing:
|
None
|
Allowance for loan
losses:
|
$0.3
million
|
Remaining
indemnification asset:
|
None
|
Foreclosed
properties:
|
$1.2
million
|
|
|
For the three months
ended March 31, 2016
|
|
Loan discount
accretion income recognized:
|
$0.4
million
|
Indemnification asset
expense associated
|
|
with the
loan discount accretion income recognized:
|
$0.2
million
|
The Company continues to have two loss-sharing agreements with
the FDIC in place. The next agreement that expires does so on
July 1, 2019.
Comments of the President and Other Business Matters
Richard H. Moore, President and
CEO of First Bancorp, commented on today's report, "I am pleased to
report another quarter of strong earnings for the Company.
Asset quality continues to improve and we are focused on strategic
initiatives that we expect will result in future increases in
profitability and market share."
The following is a list of business development and other
miscellaneous matters affecting the Company:
- On March 4, 2016, the Company
announced that it had reached an agreement with First Community
Bank to exchange all seven First Bank branches in Virginia in return for six of First Community
Bank's branches located in North
Carolina. Four of the six branches expected to be acquired
are in Winston-Salem, with the
other two branches being in the Charlotte-metro markets of Mooresville and Huntersville. This transaction is subject to
regulatory approval and is expected to be completed in the third
quarter of 2016.
- On January 1, 2016, the Company
completed the acquisition of Bankingport, Inc., an insurance agency
based in Sanford, North Carolina.
This acquisition provided the Company the opportunity to enhance
its product offerings, as well as expand its insurance agency
operations into Sanford, a
significant banking market for the Company.
- On March 15, 2016, the Company
announced a quarterly cash dividend of $0.08
cents per share payable on April 25,
2016 to shareholders of record on March 31, 2016. This is the same dividend rate as
the Company declared in the first quarter of 2015.
Note Regarding Components of Earnings
The Company's results of operations are significantly affected
by the on-going accounting for two FDIC-assisted failed bank
acquisitions. In the discussion above, the term "covered" is
used to describe assets included as part of FDIC loss share
agreements, which generally result in the FDIC reimbursing the
Company for 80% of losses incurred on those assets. The term
"non-covered" refers to the Company's legacy assets, which are not
included in any type of loss share arrangement.
For covered loans that deteriorate in terms of repayment
expectations, the Company records immediate allowances through the
provision for loan losses. For covered loans that experience
favorable changes in credit quality compared to what was expected
at the acquisition date, including loans that pay off, the Company
records positive adjustments to interest income over the life of
the respective loan – also referred to as loan discount
accretion. For covered foreclosed properties that are sold at
gains or losses or that are written down to lower values, the
Company records the gains/losses within noninterest
income.
The adjustments discussed above are recorded within the income
statement line items noted without consideration of the FDIC loss
share agreements. Because favorable changes in covered assets
result in lower expected FDIC claims, and unfavorable changes in
covered assets result in higher expected FDIC claims, the FDIC
indemnification asset is adjusted to reflect those
expectations. The net increase or decrease in the
indemnification asset is reflected within noninterest income.
The adjustments noted above can result in volatility within
individual income statement line items. Because of the FDIC
loss share agreements and the associated indemnification asset,
pretax income resulting from amounts recorded as provisions for
loan losses on covered loans, discount accretion, and losses from
covered foreclosed properties is generally only impacted by 20% of
these amounts due to the corresponding adjustments made to the
indemnification asset.
* * *
First Bancorp is a bank holding company headquartered in
Southern Pines, North Carolina
with total assets of approximately $3.4
billion. Its principal activity is the ownership and
operation of First Bank, a state-chartered community bank that
operates 88 branches, with 75 branches operating in North Carolina, 6 branches in South Carolina (Cheraw, Dillon, Florence, and Latta), and 7 branches in Virginia (Abingdon, Blacksburg, Christiansburg, Fort Chiswell, Radford, Salem and Wytheville), where First Bank does business as
First Bank of Virginia. First Bank
also has loan production offices in the North Carolina cities of Charlotte, Greensboro, Greenville, and Raleigh. First Bancorp's common stock is
traded on the NASDAQ Global Select Market under the symbol
"FBNC."
Please visit our website at www.LocalFirstBank.com.
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and the Private Securities Litigation Reform Act of 1995, which
statements are inherently subject to risks and uncertainties.
Forward-looking statements are statements that include projections,
predictions, expectations or beliefs about future events or results
or otherwise are not statements of historical fact. Such
statements are often characterized by the use of qualifying words
(and their derivatives) such as "expect," "believe," "estimate,"
"plan," "project," "anticipate," or other statements concerning
opinions or judgments of the Company and its management about
future events. Factors that could influence the accuracy of
such forward-looking statements include, but are not limited to,
the financial success or changing strategies of the Company's
customers, the Company's level of success in integrating
acquisitions, actions of government regulators, the level of market
interest rates, and general economic conditions. For
additional information about the factors that could affect the
matters discussed in this paragraph, see the "Risk Factors" section
of the Company's most recent annual report on Form 10-K available
at www.sec.gov. Forward-looking statements speak only as of
the date they are made, and the Company undertakes no obligation to
update or revise forward-looking statements. The Company is
also not responsible for changes made to the press release by wire
services, internet services or other media.
First Bancorp and
Subsidiaries Financial
Summary – Page 1
|
|
Three Months
Ended
March 31,
|
|
Percent
|
($ in thousands
except per share data – unaudited)
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
Interest
and fees on loans
|
$
29,573
|
|
29,441
|
|
|
Interest
on investment securities
|
2,268
|
|
1,822
|
|
|
Other
interest income
|
222
|
|
195
|
|
|
Total interest
income
|
32,063
|
|
31,458
|
|
1.9%
|
Interest
expense
|
|
|
|
|
|
Interest
on deposits
|
1,320
|
|
1,458
|
|
|
Interest
on borrowings
|
548
|
|
297
|
|
|
Total interest
expense
|
1,868
|
|
1,755
|
|
6.4%
|
Net
interest income
|
30,195
|
|
29,703
|
|
1.7%
|
Provision for loan
losses – non-covered loans
|
1,621
|
|
104
|
|
|
Provision (reversal)
for loan losses – covered loans
|
(1,363)
|
|
(268)
|
|
|
Total provision
(reversal) for loan losses
|
258
|
|
(164)
|
|
n/m
|
Net interest income
after provision for loan losses
|
29,937
|
|
29,867
|
|
0.2%
|
Noninterest
income
|
|
|
|
|
|
Service
charges on deposit accounts
|
2,685
|
|
2,892
|
|
|
Other
service charges, commissions, and fees
|
2,830
|
|
2,542
|
|
|
Fees
from presold mortgages
|
371
|
|
808
|
|
|
Commissions from financial product sales
|
938
|
|
561
|
|
|
Bank-owned life insurance income
|
508
|
|
371
|
|
|
Foreclosed property gains (losses) – non-covered
|
(237)
|
|
(494)
|
|
|
Foreclosed property gains (losses) – covered
|
447
|
|
237
|
|
|
FDIC
indemnification asset income (expense), net
|
(2,366)
|
|
(2,392)
|
|
|
Securities gains (losses)
|
3
|
|
−
|
|
|
Other
gains (losses)
|
(177)
|
|
4
|
|
|
Total noninterest
income
|
5,002
|
|
4,529
|
|
10.4%
|
Noninterest
expenses
|
|
|
|
|
|
Salaries
expense
|
11,475
|
|
11,497
|
|
|
Employee
benefit expense
|
2,706
|
|
2,183
|
|
|
Occupancy and equipment expense
|
2,813
|
|
2,825
|
|
|
Intangibles amortization
|
186
|
|
180
|
|
|
Other
operating expenses
|
7,593
|
|
7,029
|
|
|
Total noninterest
expenses
|
24,773
|
|
23,714
|
|
4.5%
|
Income before income
taxes
|
10,166
|
|
10,682
|
|
(4.8%)
|
Income
taxes
|
3,329
|
|
3,694
|
|
(9.9%)
|
Net income
|
6,837
|
|
6,988
|
|
(2.2%)
|
|
|
|
|
|
|
Preferred stock
dividends
|
(58)
|
|
(217)
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders
|
$
6,779
|
|
6,771
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share – basic
|
$
0.34
|
|
0.34
|
|
0.0%
|
Earnings per common
share – diluted
|
0.33
|
|
0.33
|
|
0.0%
|
|
|
|
|
|
|
ADDITIONAL INCOME
STATEMENT INFORMATION
|
|
|
|
|
|
Net
interest income, as reported
|
$
30,195
|
|
29,703
|
|
|
Tax-equivalent adjustment (1)
|
459
|
|
390
|
|
|
Net
interest income, tax-equivalent
|
$
30,654
|
|
30,093
|
|
1.9%
|
|
|
|
|
|
|
(1)
|
This amount reflects
the tax benefit that the Company receives related to its tax-exempt
loans and securities, which carry interest rates lower than similar
taxable investments due to their tax-exempt status. This
amount has been computed assuming a 38% tax rate and is reduced by
the related nondeductible portion of interest expense.
|
|
n/m = not
meaningful
|
First Bancorp and
Subsidiaries
Financial Summary
– Page 2
|
|
Three Months
Ended
March 31,
|
|
PERFORMANCE
RATIOS (annualized)
|
2016
|
2015
|
|
Return on average
assets (1)
|
0.82%
|
0.86%
|
|
Return on average
common equity (2)
|
7.97%
|
8.54%
|
|
Net interest margin –
tax-equivalent (3)
|
4.07%
|
4.19%
|
|
Net charge-offs to
average loans – non-covered
|
0.52%
|
0.84%
|
|
|
|
|
|
COMMON SHARE
DATA
|
|
|
|
Cash dividends
declared – common
|
$ 0.08
|
$ 0.08
|
|
Stated book value –
common
|
17.24
|
16.34
|
|
Tangible book value –
common
|
13.75
|
12.90
|
|
Common shares
outstanding at end of period
|
19,865,779
|
19,740,183
|
|
Weighted average
shares outstanding – basic
|
19,783,747
|
19,721,992
|
|
Weighted average
shares outstanding – diluted
|
20,553,858
|
20,454,614
|
|
|
|
|
|
CAPITAL
RATIOS
|
|
|
|
Tangible equity to
tangible assets
|
8.46%
|
10.33%
|
|
Tangible common
equity to tangible assets
|
8.24%
|
8.08%
|
|
Tier I leverage
ratio
|
10.40%
|
12.17%
|
|
Tier I risk-based
capital ratio
|
13.26%
|
16.39%
|
|
Total risk-based
capital ratio
|
14.29%
|
17.65%
|
|
|
|
|
|
AVERAGE
BALANCES ($ in thousands)
|
|
|
|
Total
assets
|
$ 3,332,492
|
3,194,570
|
|
Loans
|
2,528,317
|
2,391,071
|
|
Earning
assets
|
3,028,775
|
2,910,732
|
|
Deposits
|
2,775,391
|
2,688,973
|
|
Interest-bearing
liabilities
|
2,303,445
|
2,210,302
|
|
Shareholders'
equity
|
349,484
|
392,173
|
|
|
|
|
|
(1)
|
Calculated by
dividing annualized net income available to common shareholders by
average assets.
|
(2)
|
Calculated by
dividing annualized net income available to common shareholders by
average common equity.
|
(3)
|
See footnote 1 on
page 1 of Financial Summary for discussion of tax-equivalent
adjustments.
|
|
TREND
INFORMATION
|
($ in thousands
except per share data)
|
For the Three Months
Ended
|
INCOME
STATEMENT
|
March 31,
2016
|
December 31,
2015
|
September 30,
2015
|
June 30,
2015
|
March 31,
2015
|
|
|
|
|
|
|
Net interest income –
tax-equivalent (1)
|
$ 30,654
|
30,476
|
30,805
|
30,007
|
30,093
|
Taxable equivalent
adjustment (1)
|
459
|
423
|
419
|
402
|
390
|
Net interest
income
|
30,195
|
30,053
|
30,386
|
29,605
|
29,703
|
Provision for loan
losses – non-covered
|
1,621
|
636
|
267
|
1,001
|
104
|
Provision (reversal)
for loan losses – covered
|
(1,363)
|
(679)
|
(1,681)
|
(160)
|
(268)
|
Noninterest
income
|
5,002
|
5,725
|
3,506
|
5,004
|
4,529
|
Noninterest
expense
|
24,773
|
25,503
|
24,614
|
24,300
|
23,714
|
Income before income
taxes
|
10,166
|
10,318
|
10,692
|
9,468
|
10,682
|
Income tax
expense
|
3,329
|
3,521
|
3,687
|
3,224
|
3,694
|
Net income
|
6,837
|
6,797
|
7,005
|
6,244
|
6,988
|
Preferred stock
dividends
|
(58)
|
(37)
|
(137)
|
(212)
|
(217)
|
Net income available
to common shareholders
|
6,779
|
6,760
|
6,868
|
6,032
|
6,771
|
|
|
|
|
|
|
Earnings per common
share – basic
|
0.34
|
0.34
|
0.35
|
0.30
|
0.34
|
Earnings per common
share – diluted
|
0.33
|
0.33
|
0.34
|
0.30
|
0.33
|
|
|
See footnote 1 on
page 1 of Financial Summary for discussion of tax-equivalent
adjustments.
|
First Bancorp and
Subsidiaries
Financial Summary
– Page 3
|
|
CONSOLIDATED
BALANCE SHEETS
($ in
thousands)
|
At Mar. 31,
2016
|
|
At Dec. 31,
2015
|
|
At Mar.
31,
2015
|
|
One Year
Change
|
Assets
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$ 52,393
|
|
53,285
|
|
84,208
|
|
(37.8%)
|
Interest bearing
deposits with banks
|
149,201
|
|
213,983
|
|
160,279
|
|
(6.9%)
|
Total cash and cash
equivalents
|
201,594
|
|
267,268
|
|
244,487
|
|
(17.5%)
|
|
|
|
|
|
|
|
|
Investment
securities
|
395,625
|
|
320,224
|
|
343,123
|
|
15.3%
|
Presold
mortgages
|
3,102
|
|
4,323
|
|
8,273
|
|
(62.5%)
|
|
|
|
|
|
|
|
|
Loans –
non-covered
|
2,439,830
|
|
2,416,285
|
|
2,275,570
|
|
7.2%
|
Loans – covered by
FDIC loss share agreements
|
99,523
|
|
102,641
|
|
119,829
|
|
(16.9%)
|
Total loans
|
2,539,353
|
|
2,518,926
|
|
2,395,399
|
|
6.0%
|
Allowance for loan
losses – non-covered
|
(25,249)
|
|
(26,784)
|
|
(33,770)
|
|
(25.2%)
|
Allowance for loan
losses – covered
|
(1,399)
|
|
(1,799)
|
|
(2,226)
|
|
(37.2%)
|
Total allowance for loan
losses
|
(26,648)
|
|
(28,583)
|
|
(35,996)
|
|
(26.0%)
|
Net loans
|
2,512,705
|
|
2,490,343
|
|
2,359,403
|
|
6.5%
|
|
|
|
|
|
|
|
|
Premises and
equipment
|
75,268
|
|
74,559
|
|
75,573
|
|
(0.4%)
|
FDIC indemnification
asset
|
6,704
|
|
8,439
|
|
18,452
|
|
(63.7%)
|
Intangible
assets
|
69,361
|
|
67,171
|
|
67,712
|
|
2.4%
|
Foreclosed real
estate – non-covered
|
8,767
|
|
9,188
|
|
8,978
|
|
(2.4%)
|
Foreclosed real
estate – covered
|
1,569
|
|
806
|
|
2,055
|
|
(23.6%)
|
Bank-owned life
insurance
|
72,594
|
|
72,086
|
|
55,793
|
|
30.1%
|
Other
assets
|
35,677
|
|
47,658
|
|
35,739
|
|
(0.2%)
|
Total assets
|
$ 3,382,966
|
|
3,362,065
|
|
3,219,588
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest bearing
checking accounts
|
$ 679,228
|
|
659,038
|
|
591,283
|
|
14.9%
|
Interest bearing checking
accounts
|
607,617
|
|
626,878
|
|
578,784
|
|
5.0%
|
Money market
accounts
|
665,291
|
|
636,692
|
|
568,752
|
|
17.0%
|
Savings accounts
|
194,573
|
|
186,616
|
|
183,036
|
|
6.3%
|
Brokered deposits
|
71,128
|
|
76,412
|
|
62,801
|
|
13.3%
|
Internet time
deposits
|
−
|
|
−
|
|
249
|
|
(100.0%)
|
Other time deposits >
$100,000
|
322,607
|
|
329,819
|
|
373,599
|
|
(13.6%)
|
Other time
deposits
|
286,377
|
|
295,830
|
|
335,110
|
|
(14.5%)
|
Total deposits
|
2,826,821
|
|
2,811,285
|
|
2,693,614
|
|
4.9%
|
|
|
|
|
|
|
|
|
Borrowings
|
186,394
|
|
186,394
|
|
116,394
|
|
60.1%
|
Other
liabilities
|
19,919
|
|
22,196
|
|
16,336
|
|
21.9%
|
Total liabilities
|
3,033,134
|
|
3,019,875
|
|
2,826,344
|
|
7.3%
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Preferred
stock
|
7,287
|
|
7,287
|
|
70,787
|
|
(89.7%)
|
Common
stock
|
135,318
|
|
133,393
|
|
132,752
|
|
1.9%
|
Retained
earnings
|
210,250
|
|
205,060
|
|
190,150
|
|
10.9%
|
Accumulated other
comprehensive income (loss)
|
(3,023)
|
|
(3,550)
|
|
(445)
|
|
n/m
|
Total shareholders'
equity
|
349,832
|
|
342,190
|
|
393,244
|
|
(11.0%)
|
Total liabilities and
shareholders' equity
|
$ 3,382,966
|
|
3,362,065
|
|
3,219,588
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
n/m = not
meaningful
|
First Bancorp and
Subsidiaries
Financial Summary
- Page 4
|
|
|
For the Three Months
Ended
|
YIELD
INFORMATION
|
March 31,
2016
|
December 31,
2015
|
September 30,
2015
|
June 30,
2015
|
March 31,
2015
|
|
|
|
|
|
|
Yield on
loans
|
4.70%
|
4.69%
|
4.83%
|
4.86%
|
4.99%
|
Yield on securities –
tax-equivalent (1)
|
3.26%
|
2.99%
|
2.75%
|
2.80%
|
2.67%
|
Yield on other
earning assets
|
0.54%
|
0.36%
|
0.43%
|
0.50%
|
0.43%
|
Yield on
all interest earning assets
|
4.32%
|
4.29%
|
4.38%
|
4.38%
|
4.44%
|
|
|
|
|
|
|
Rate on interest
bearing deposits
|
0.25%
|
0.24%
|
0.24%
|
0.26%
|
0.28%
|
Rate on other
interest bearing liabilities
|
1.18%
|
1.05%
|
1.09%
|
1.04%
|
1.03%
|
Rate on
all interest bearing liabilities
|
0.33%
|
0.31%
|
0.31%
|
0.30%
|
0.32%
|
Total cost of
funds
|
0.25%
|
0.24%
|
0.24%
|
0.24%
|
0.26%
|
|
|
|
|
|
|
Net
interest margin – tax-equivalent (2)
|
4.07%
|
4.05%
|
4.14%
|
4.15%
|
4.19%
|
Average
prime rate
|
3.50%
|
3.29%
|
3.25%
|
3.25%
|
3.25%
|
|
(1)
|
See footnote 1 on
page 1 of Financial Summary for discussion of tax-equivalent
adjustments.
|
(2)
|
Calculated by
dividing annualized tax-equivalent net interest income by average
earning assets for the period. See footnote 1 on page 1 of
Financial Summary for discussion of tax-equivalent
adjustments.
|
|
|
|
For the Three Months
Ended
|
NET INTEREST
INCOME PURCHASE ACCOUNTING ADJUSTMENTS
($ in
thousands)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income –
increased by accretion of loan discount (1)
|
|
|
$
1,055
|
|
854
|
|
1,205
|
|
1,135
|
|
1,557
|
Impact on net interest
income
|
|
|
$
1,055
|
|
854
|
|
1,205
|
|
1,135
|
|
1,557
|
|
|
(1)
|
Corresponding
indemnification asset expense is recorded for approximately 80% of
this amount, and therefore the net effect is that pretax income is
positively impacted by 20% of the amounts in this line
item.
|
First Bancorp and
Subsidiaries
Financial Summary
- Page 5
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
DATA ($ in thousands)
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Non-covered
nonperforming assets
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$ 35,741
|
|
39,994
|
|
42,347
|
|
44,123
|
|
47,416
|
Troubled debt
restructurings - accruing
|
27,055
|
|
28,011
|
|
29,250
|
|
32,059
|
|
33,997
|
Accruing loans > 90
days past due
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total non-covered
nonperforming loans
|
62,796
|
|
68,005
|
|
71,597
|
|
76,182
|
|
81,413
|
Foreclosed real
estate
|
8,767
|
|
9,188
|
|
9,304
|
|
9,954
|
|
8,978
|
Total non-covered
nonperforming assets
|
$ 71,563
|
|
77,193
|
|
80,901
|
|
86,136
|
|
90,391
|
|
|
|
|
|
|
|
|
|
|
Covered
nonperforming assets (1)
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
$ 5,670
|
|
7,816
|
|
5,373
|
|
7,378
|
|
8,596
|
Troubled debt
restructurings - accruing
|
3,459
|
|
3,478
|
|
3,825
|
|
3,910
|
|
3,874
|
Accruing loans > 90
days past due
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total covered nonperforming
loans
|
9,129
|
|
11,294
|
|
9,198
|
|
11,288
|
|
12,470
|
Foreclosed real
estate
|
1,569
|
|
806
|
|
1,569
|
|
1,945
|
|
2,055
|
Total covered
nonperforming assets
|
$ 10,698
|
|
12,100
|
|
10,767
|
|
13,233
|
|
14,525
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
$ 82,261
|
|
89,293
|
|
91,668
|
|
99,369
|
|
104,916
|
Asset Quality
Ratios – All Assets
|
|
|
|
|
|
|
|
|
|
Net quarterly
charge-offs to average loans - annualized
|
0.35%
|
|
0.23%
|
|
0.10%
|
|
0.80%
|
|
0.76%
|
Nonperforming loans
to total loans
|
2.83%
|
|
3.15%
|
|
3.26%
|
|
3.63%
|
|
3.92%
|
Nonperforming assets
to total assets
|
2.43%
|
|
2.66%
|
|
2.80%
|
|
3.09%
|
|
3.26%
|
Allowance for loan
losses to total loans
|
1.05%
|
|
1.13%
|
|
1.21%
|
|
1.33%
|
|
1.50%
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios – Based on Non-covered Assets only
|
|
|
|
|
|
|
|
|
|
Net quarterly
charge-offs to average non-covered loans - annualized
|
0.52%
|
|
0.33%
|
|
0.38%
|
|
0.81%
|
|
0.84%
|
Non-covered
nonperforming loans to non-covered loans
|
2.57%
|
|
2.81%
|
|
3.01%
|
|
3.31%
|
|
3.58%
|
Non-covered
nonperforming assets to total non-covered assets
|
2.18%
|
|
2.37%
|
|
2.56%
|
|
2.78%
|
|
2.92%
|
Allowance for loan
losses (non-covered) to non-covered loans
|
1.03%
|
|
1.11%
|
|
1.19%
|
|
1.31%
|
|
1.48%
|
|
|
|
|
|
|
|
|
|
|
___________________________________________________________________________________________________________________
(1) Covered
nonperforming assets consist of assets that are included in
loss-share agreements with the FDIC.
|
First Bancorp and
Subsidiaries
Financial Summary
- Page 6
|
|
|
For the Three Months
Ended
|
NET INTEREST
MARGIN, EXCLUDING LOAN DISCOUNT ACCRETION –
RECONCILIATION
($ in
thousands)
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
as reported
|
$ 30,195
|
|
30,053
|
|
30,386
|
|
29,605
|
|
29,703
|
Tax-equivalent
adjustment
|
459
|
|
423
|
|
419
|
|
402
|
|
390
|
Net interest income,
tax-equivalent (A)
|
$ 30,654
|
|
30,476
|
|
30,805
|
|
30,007
|
|
30,093
|
Average earning
assets (B)
|
$ 3,028,775
|
|
2,982,356
|
|
2,951,638
|
|
2,901,770
|
|
2,910,732
|
Tax-equivalent net
interest margin, annualized – as reported –
(A)/(B)
|
4.07%
|
|
4.05%
|
|
4.14%
|
|
4.15%
|
|
4.19%
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
tax-equivalent
|
$ 30,654
|
|
30,476
|
|
30,805
|
|
30,007
|
|
30,093
|
Loan discount
accretion
|
1,055
|
|
854
|
|
1,205
|
|
1,135
|
|
1,557
|
Net interest income,
tax-equivalent, excluding loan discount accretion
(A)
|
$ 29,599
|
|
29,622
|
|
29,600
|
|
28,872
|
|
28,536
|
Average earnings
assets (B)
|
$ 3,028,775
|
|
2,982,356
|
|
2,951,638
|
|
2,901,770
|
|
2,910,732
|
Tax-equivalent net
interest margin, excluding impact of loan discount accretion,
annualized – (A) / (B)
|
3.93%
|
|
3.94%
|
|
3.98%
|
|
3.99%
|
|
3.98%
|
Note: The measure "tax-equivalent net interest margin,
excluding impact of loan discount accretion" is a non-GAAP
performance measure. Management of the Company believes that
it is useful to calculate and present the Company's net interest
margin without the impact of loan discount accretion for the
reasons explained in the remainder of this paragraph. Loan
discount accretion is a non-cash interest income adjustment related
to the Company's acquisition of two failed banks and represents the
portion of the fair value discount that was initially recorded on
the acquired loans that is being recognized into income over the
lives of the loans. At March 31,
2016, the Company had a remaining loan discount balance of
$14.0 million compared to
$19.1 million at March 31, 2015. For the related loans that
perform and pay-down over time, the loan discount will also be
reduced, with a corresponding increase to interest income.
Therefore management of the Company believes it is useful to also
present this ratio to reflect the Company's net interest margin
excluding this non-cash, temporary loan discount accretion
adjustment to aid investors in comparing financial results between
periods. The Company cautions that non-GAAP financial
measures should be considered in addition to, but not as a
substitute for, the Company's reported GAAP results.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/first-bancorp-reports-first-quarter-results-300258593.html
SOURCE First Bancorp